New York Federal Reserve President John Williams said Thursday that it is reasonable to expect the U.S. Federal Reserve could raise interest rates again before the end of 2026, as policymakers remain focused on inflation risks.
Williams said market expectations for another rate hike by year-end were a reasonable way to view the outlook, but stressed that the Fed will continue to assess incoming economic data before making its next decision.
The Fed recently raised its policy rate by 25 basis points to 3.75%–4.00%. Policymakers also signaled that another increase could be needed before the end of the year.
Higher energy prices linked to the ongoing conflict involving Iran have added to inflation pressures, while the U.S. economy has remained relatively resilient.
